In July 2004, Crescent City received a federal grant of $$ 100,000$, to be used to purchase
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In July 2004, Crescent City received a federal grant of $\$ 100,000$, to be used to purchase food for horses used by that city's mounted police. By year-end, hay and oats costing $\$ 70,000$ had been purchased by the city and eaten by the horses. In 2005, the remainder of the grant was spent on more hay and oats.
Required: 1. What entry should be made when the grant is received?
2. What entry or entries should be made when the hay and oats are received? Assume that the city pays for these goods as soon as they are received.
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Related Book For
Introduction To Government And Not For Profit Accounting
ISBN: 9780130464149
5th Edition
Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch
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